What is a Section 24 notice and who needs to send one?

Under 770 ILCS 60/24, any subcontractor or supplier who does not have a direct contract with the property owner must generally serve a written notice within 90 days of last furnishing labor or materials. This notice preserves the right to file a mechanics lien. However, there are exceptions — for example, subcontractors or suppliers listed on the general contractor's sworn statement under Section 5 may retain lien rights even without a separate Section 24 notice. Because the rules are fact-specific, consult an attorney to confirm whether a notice is required in your situation.

What is the difference between a conditional and unconditional lien waiver?

A conditional lien waiver releases lien rights only after the specified payment clears. An unconditional waiver releases rights immediately upon signing, regardless of whether payment is actually received. Always use conditional waivers until funds are confirmed in your account.

How far in advance should a contractor begin compliance planning?

Compliance planning should begin before the first day of work. Identify whether the project is public or private, determine your tier in the contracting chain, calendar all applicable notice deadlines, and set internal reminders at least two weeks before each deadline passes.

Does compliance differ between residential and commercial projects?

Yes. On owner-occupied residential projects (four or fewer units), additional notice requirements apply under Section 24.1 of the Mechanics Lien Act. These residential-specific rules require a different notice format and different service procedures compared to commercial work.

What happens if I miss a lien deadline but still have a valid contract claim?

You lose the ability to file a mechanics lien, but your contractual rights remain. You may still pursue a breach of contract action, though you lose the powerful leverage of a lien against the property. This is why proactive compliance — calendaring deadlines early — is critical.

Do I need separate compliance procedures for public projects?

Yes. Public projects do not allow mechanics liens. Instead, you must comply with payment bond notice requirements (30 ILCS 550) or the lien on public funds procedure (770 ILCS 60/23). Each has its own deadlines, notice format, and recipient requirements.

Should I send a Section 24 notice even if I expect to be paid?

Absolutely. The notice preserves your rights as a precaution. Sending it does not imply a dispute or create hostility — experienced contractors and owners understand it as standard practice. If payment comes through, you simply do not file a lien.

What records should I keep on every construction project?

At minimum: the signed contract and all amendments, every change order (signed by both parties), all invoices and pay applications, delivery tickets and material receipts, daily logs, all correspondence, lien waivers exchanged, and records of the first and last dates you furnished labor or materials.

Best Practices for Contractors, Subcontractors, and Suppliers

Illinois Construction Law Compliance

Payment recovery starts before the first invoice goes unpaid. Proper compliance — sending notices on time, documenting every change, and understanding your rights — determines whether you can collect when a dispute arises.

Illinois construction payment law rewards preparation. Contractors, subcontractors, and suppliers who follow consistent compliance procedures — sending the right notices, meeting every deadline, and maintaining clean documentation — are in a dramatically stronger position when payment disputes arise. This guide outlines the practices that protect your right to get paid, starting from the most critical moment: when the contract is signed.

Last updated: March 2026

Step 1: At Contract Formation — The Most Critical Moment

The moment a contract is signed is when you have the most leverage and the most opportunity to protect yourself. Every piece of information you gather now and every document you secure today makes payment recovery easier if a dispute arises later. Skip this step and you start the project as an unsecured creditor with limited options.

Written Contract

Every project needs a signed, written contract that clearly outlines each party's scope of work, payment terms, schedule, change order procedures, and dispute resolution mechanism. A handshake deal leaves you unsecured — if there is no written agreement defining when and how you get paid, you are already at a disadvantage. The contract is your first line of defense, and its terms determine the strength of every remedy that follows.

Have Your Customer Complete a Project Data Sheet

For every new project, document the property owner's name and address, the general contractor, the project address, your contract amount, start date, and your position in the contracting chain (GC, subcontractor, supplier, etc.). This information is required for every lien filing, bond claim, and statutory notice under Illinois law. If you don't have it when you need it, you may miss a deadline gathering it.

Download Project Intake Form (PDF)

Obtain the Payment Bond (If One Exists)

On bonded projects — whether public or private — request a copy of the payment bond immediately. You need the surety's name, bond number, and penal sum to file a bond claim later. Don't wait until there's a payment problem to start looking for this information. On public projects, the awarding authority is required to have a bond under 30 ILCS 550. On private projects, check your contract and ask the GC directly. If a bond exists, get it now.

Step 2: Before Work Begins

With your contract signed and project data documented, the next step is to identify the legal landscape of the project before you pick up a tool or deliver a single load of material.

Identify the Project Type Immediately

Before the first day of work, determine whether the project is public or private. This single determination controls which remedies are available and which deadlines apply. On a public job, mechanics liens do not attach — your rights flow through payment bonds or liens on public funds instead.

Know Your Position in the Contracting Chain

General contractors, first-tier subcontractors, and sub-subcontractors all face different notice requirements under the Illinois Mechanics Lien Act. Your tier determines whether you need a Section 24 notice, how the lien amount is calculated, and which parties must receive service.

Calendar Every Deadline Before Work Starts

Set calendar reminders for the 90-day notice window, 4-month recording deadline, and 2-year enforcement period. Build in a two-week buffer before each deadline. Missing a single deadline can permanently forfeit your right to file a lien or bond claim.

Track First and Last Furnishing Dates

Every deadline under the Mechanics Lien Act runs from specific dates — typically the date of last furnishing labor or materials. Maintain contemporaneous records of your first day on site and your last day of work. Punch list items and warranty callbacks may or may not extend these dates depending on the circumstances.

Step 3: Preserving Your Mechanic Liens and Bond Claims Throughout the Project

The Illinois Mechanics Lien Act conditions payment rights on timely written notices. These are not optional formalities — they are jurisdictional prerequisites. If you do not send the right notice to the right party within the statutory window, your lien claim is barred.

Section 24 Notice (Subcontractors)

Written notice to the owner within 90 days of last furnishing. Generally required for anyone without a direct contract with the property owner, though exceptions exist (e.g., parties listed on the GC's sworn statement).

Full Section 24 guide

Payment Bond Notice (Public Projects)

Written notice to the general contractor and surety within 180 days of last furnishing (best practice: 90 days). The same deadline applies regardless of tier.

Full bond claim guide

Lien Recording (Private Projects)

The claim for lien must be recorded in the county recorder's office within 4 months after last furnishing. Late filings are void.

Full filing guide

Section 34 Demand Response

If an owner or interested party sends a Section 34 demand, you have 30 days to file a foreclosure action or the lien is forfeited entirely.

Full Section 34 guide

Documentation Best Practices

Liens and bond claims depend on documentation. The strength of your position in any payment dispute is directly proportional to the quality of your records. Courts and arbitrators give far more weight to contemporaneous documentation than to after-the-fact reconstructions.

Contracts and Amendments

Keep the signed original of every contract, subcontract, and purchase order. When scope changes, execute a formal written change order signed by both parties — verbal agreements are difficult to enforce and create lien amount disputes.

Invoices and Pay Applications

Submit invoices on a regular schedule. Each invoice should reference the contract, itemize labor and materials, and include the period covered. Retain proof of delivery (email confirmation, certified mail receipt, hand-delivery log).

Daily Logs and Delivery Records

Maintain daily field reports noting work performed, materials delivered, weather conditions, and personnel on site. These logs establish your first and last furnishing dates — the dates that control every lien deadline.

Correspondence

Save every email, text, and letter related to the project — especially payment demands, delay notices, and scope disputes. Written communications often contain admissions that prove critical in litigation.

Lien Waiver Handling

Lien waivers are one of the most common sources of compliance problems. Signing the wrong type of waiver at the wrong time can extinguish your lien rights even if you have not been paid. Understanding the distinction between conditional and unconditional waivers is essential.

Conditional Waivers

Release lien rights only upon actual receipt of payment. If the check bounces or the wire does not clear, your rights remain intact. Always use conditional waivers for progress payments until the funds are confirmed in your account.

Unconditional Waivers

Release lien rights immediately upon signing, whether or not you have been paid. Only sign unconditional waivers after confirming the payment has cleared your bank. Signing one prematurely can leave you with no lien remedy even if the payment fails.

Review every waiver form carefully before signing. Some general contractors use custom waiver forms that contain broader language than necessary — waiving not just lien rights but also contract claims, delay damages, or change order rights. If a waiver goes beyond the standard conditional or unconditional format, have it reviewed before signing.

Public vs. Private Project Compliance

The most consequential compliance decision is identifying whether your project is public or private. Getting this wrong means pursuing the wrong remedy entirely — and potentially missing the deadline for the correct one.

Private Project Compliance

Send Section 24 notice within 90 days (if not direct contractor)
Record lien within 4 months of last furnishing
File foreclosure within 2 years of last furnishing labor or material
Respond to any Section 34 demand within 30 days

Public Project Compliance

Identify whether a payment bond exists
Send bond claim notice within required window
If no bond, pursue lien on public funds (770 ILCS 60/23)
File suit within statutory window after notice

When to Escalate: The Payment Recovery Timeline

Not every late payment requires a lien filing. But every late payment requires a plan. The escalation sequence below reflects how experienced Illinois contractors and their attorneys approach nonpayment — starting with informal steps and progressing to formal remedies only when necessary.

Direct Communication

Contact the paying party directly. Many payment delays result from administrative errors, cash flow timing, or disputes over scope that can be resolved with a phone call or email. Document the conversation in writing afterward.

Formal Demand Letter

If informal communication does not produce payment, send a formal construction demand letter. A demand letter from an attorney carries significantly more weight and demonstrates that you are prepared to pursue legal remedies.

Lien or Bond Claim Filing

If the demand does not produce payment, file the appropriate claim — a mechanics lien on private projects or a payment bond claim on public projects. Filing creates legal leverage and signals that you are pursuing the debt through formal channels.

Enforcement and Litigation

When a filed lien or bond claim does not produce a settlement, the final step is a foreclosure action (for liens) or a suit on the bond. This is the stage where an experienced construction attorney is essential.

Frequently Asked Questions

Additional Resources

For a national overview of mechanic lien and bond claim best practices — including state-by-state comparisons — visit our companion site:

MechanicLiens.com — Best Practices Guide

From Unsecured to Secured

Every construction project starts the same way: you agree to do the work, and someone agrees to pay you. But until you take specific steps to protect that promise, you are an unsecured creditor — no different from any other vendor hoping to collect.

Unsecured

No written contract — terms are uncertain
No project data on file — can't meet notice requirements
No bond information — can't pursue surety
No documentation of furnishing dates — deadlines unknown
If they don't pay, you have a breach of contract claim and little else

Secured

Written contract defines scope, payment, and remedies
Project data sheet completed — ready for any filing
Payment bond on file — surety claim available if needed
All notices sent on time — lien rights fully preserved
If they don't pay, you have a lien on the property or a claim against the surety's bond

The difference between these two positions is not luck — it's preparation. Every step in this checklist moves you from the left column to the right. The goal is to never file a lien or bond claim. But if you have to, you want to be ready.